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Whether the amount of the legal settlement needs to be reported as taxable income depends on what it represents.   If you received punitive damages, this would be taxable income, and often a Form 1099-MISC would be issued.    Property settlements for losses in the value of a property that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your tax return. However, you must reduce your basis in the property by the amount of the settlement. If the property settlement exceeds your adjusted basis in the property, the excess is income.    So, if the settlement reimbursed you for the amount you overpaid for something, that could be considered nontaxable and you would adjust your basis in what you purchased. If the settlement included an additional amount for punitive damages, that amount would be taxable.   If any of the amount represented back wages, that would be taxable and should have been reported on Form W-2.   See this help article for instructions for entering a taxable legal settlement in TurboTax.   See IRS Publication 4345 for more information. If any of the settlement is taxable as damages but isn't for work you completed, you can enter it under Other Reportable Income. In TurboTax Online:   Go to Wages and Income Scroll down to Less Common Income Go to Miscellaneous Income Select Other Reportable Income and follow the prompts. Enter a description of the reason for the payment. @flippit 

To successfully transmit a Form 1099-R with a B2 distribution code in TurboTax, you must ensure it is classified as a distribution from a Designated Roth Account in a 401(k) or 403(b), not a "Roth IRA," which is a common misclassification that triggers a transmission error.    In the 1099-R entry screen, enter B in the first Box 7 code enter and 2 in the second box. You may need to check the box I have more than one value in Box 7 to do this.   In your follow-up questions after entering your Form 1099-R, TurboTax will ask if this distribution is from a Roth IRA. You must answer "No". Code B indicates it is a Designated Roth Account in a qualified retirement plan, not a Roth IRA. They are not the same.   If you are using TurboTax Online, clear your browser's cache and cookies, then log back in to try transmitting your return again. Click here for How to clear your cache. Click here for How do I delete cookies?   To get back to your Form 1099-R screens to edit your information, you can: Click on Search at the top right of your TurboTax screen Type Form 1099-R in the search box Click on the link Jump to Form 1099-R You can also try deleting and re-entering your Form 1099-R as per the above. To do this, you can use the steps listed below.   If you are using TurboTax Online you can delete your Form 1099-R as follows: Go to "Tax Tools" in your left panel of your TurboTax screen, then  Select "Tools" and  under "Other Helpful Links"  select "Delete a Form."  This will bring up all of your forms and you can click on "Delete" next to the Form "1099-R" that you want to delete.   If you are using TurboTax Desktop, you can delete your Form 1099-R as follows:  1. Click on the "Forms Icon" on the top right of your screen to bring up  "Forms Mode"  2. Choose your "Form 1099-R"from the list of forms in the left panel of your TurboTax screen 3. Use the "Delete Form" option at the bottom of your Form 1099-R that is displayed in your right panel of your TurboTax screen Select "Yes" to confirm the deletion of this form   You can get back to your Form 1099-R screens in TurboTax as follows to re-enter your Form 1099-R as explained above.   For additional instructions on how to enter a Form 1099-R in TurboTax click here for " Where do I enter my 1099-R?"    Please return to Community if you have any additional information or questions and we would be happy to help.  

Thank you. So, if there are different kinds of household items, such as home gym items (treadmill), electronic items, TV, and clothing, should they still be in one line/same line? Or should these be separated? such as one donation will be listed separately, maybe 2 or 3 groups, but all three groups were on the same date to the same charity?  Or list everything in one line, and it would be a really long description.  What's the best way?

"No, because that statement only addressed the INCOME tax.  The SELF-EMPLOYMENT tax is separate and additional."   Ok I see. What is the best way for me to determine my personalized overall % of income from my 1099 work to withhold for this year?

My $40,045 in 2024 passive losses are not carrying into my passive losses for 2025 on form 8582. I only see the 2025 losses and the 2024 losses on last year's 8582 have not carried into that. What did I do wrong? Please advise before the filing deadline. My token code is "73162545" - "71163170" if it does not delete that again thinking it is a phone number. Hope this format gets past the forum filters - seriously?? Thanks

@JCH10  Thanks for the update, you saved me a lot of time changing over to Desktop and testing it out myself! I don't think 8b applies here - the instructions and the code sections referred to appear to be for construction starting before 1/19/2023. It seems that this exception should also be added, although N/A makes more sense since we're providing the dates and that it's <1 mW. The correction to the 2025 instructions the IRS issue recently don't refer to any change to item 8b, they just refer back to the original instructions below. Correction to the 2025 Instructions for Form 3468 | Internal Revenue Service Lines 7 and 8. For line 7, if you’re completing Part VI, section M, check box 7c. If completing any other section of Part V or Part VI, check the applicable box. For line 8, check box 8b or 8c, as appropriate.   Increased Credit Amount Statement If you checked the box on line 7a or 8b to claim an increased tax credit amount in Part V or Part VI, you must also attach a statement for each facility, energy storage technology, or energy project, to your return.  

If your Box 9a on your 1099-R shows "0" or is blank, leave the field completely empty (no zeros or spaces).  For your Box 16 entry, try entering the same amount from Box 1 into Box 16 (State Distribution), or leave it blank if no state tax was withheld (Box 14 is blank).   You can also try deleting and re-entering your Form 1099-R if you are getting an error.   If you are using TurboTax Online you can delete your Form 1099-R as follows: Go to "Tax Tools" in your left panel of your TurboTax screen, then  Select "Tools" and  under "Other Helpful Links"  select "Delete a Form."  This will bring up all of your forms and you can click on "Delete" next to the Form "1099-R" that you want to delete.   If you are using TurboTax Desktop, you can delete your Form 1099-R as follows:  Click on the "Forms Icon" on the top right of your screen to bring up  "Forms Mode"  Choose your "Form 1099-R" from the list of forms in the left panel of your TurboTax screen Use the "Delete Form" option at the bottom of your Form 1099-R that is displayed in your right panel of your TurboTax screen Select "Yes" to confirm the deletion of this form   You can get back to your Form 1099-R screens in TurboTax as follows to re-enter your Form 1099-R: Click on Search at the top right of your TurboTax screen Type Form 1099-R in your search box Click on the link Jump to Form 1099-R You will be able to re-enter your Form 1099-R on the following screens Make sure to answer all of the follow-up question   For additional instructions on how to enter a Form 1099-R in TurboTax click here for " Where do I enter my 1099-R?"    Please return to Community if you have any additional information or questions and we would be happy to help.

Here are the updated steps I have been providing to report the special New York refund for 2025 so that it is taxable on the Federal return and not on the New York return:   It happens from time to time that a state will issue a payment to help its taxpayers that is not taxable to that state, but taxable on the Federal return.  For 2025, the special New York taxpayer assistance payment is nontaxable to New York but taxable on the Federal return.    Because the special New York Inflation Refund is not actually a "refund" of New York taxes paid, but a special payment to help New York residents that is taxable at the Federal level, you can report it instead in Other Reportable Income. In TurboTax Online:   From the left menu, go to Federal and select the first tab, Wages & Income Add more income by scrolling down to the last option, Less Common Income, and Show more Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start Choose the last option, Other reportable income and Start and Yes Enter the applicable description and amount and Continue   However, regardless of where you entered the payment as income on the Federal return, you will need to subtract it from New York income because the New York return doesn't have a feature that would automatically subtract this payment. When you go through the questions in the New York return in TurboTax. you will get to a section "Other changes (adjustments) to your federal income".    If you go through that section, you will eventually get to a screen titled "Enter any other subtractions" with a list of items from which to choose  (different versions of TurboTax may have the screens organized differently). One of the items on that list is "Taxable refunds (not included in line 4 of IT-201/IT-203)". You can enter the New York Inflation Refund amount you received and reported on the Federal return in the Federal column, and enter "0" in the New York column. This will allow TurboTax to subtract the amount from the New York return.   @philherz   

And actually In the Desktop program you can use any version.   All the Desktop programs have the same forms. You just get more help and guidance in the higher versions.   So you can also import everything into Deluxe.